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【Ferro-alloys.com】: The Federal Government has facilitated signing a $3.5 billion agreement between BFI Group and China National Chemical Engineering Corporation (CNCEC) to revive the Aluminium Smelter Company of Nigeria (ALSCON) in Ikot Abasi, Akwa Ibom State. The agreement, signed on Monday, November 11, aims to restart operations at the ALSCON plant.

About the signing ceremony

The signing follows a meeting between the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, top officials of CNCEC, and Dr Reuben Jaja, Chairman of BFI Group and the government-approved core investor in ALSCON, during President Bola Tinubu's state visit to Beijing earlier this year. CNCEC, China's largest petrochemical engineering company, serves as a technical partner to BFI Group, USA, on the project.

"It goes without saying that the synergy and cooperation between BFI Group and CNCEC also marks another significant moment in the commitment by the Chinese and Nigerian governments to work together and encourage collaboration between both nations for the continued growth and development of our peoples. It is our expectation, that this agreement signing ceremony will provide both BFI Group and CNCEC the platform to expedite actions necessary to restart the ALSCON plant," said Ekpo, who was represented by the Permanent Secretary in the Ministry, Nicholas Ella.

The ALSCON plant

The ALSCON plant, valued at approximately $3.5 billion, is set to leverage Nigeria's natural gas resources for its revival. The venture aims to re-establish Nigeria as a significant aluminium producer for domestic and international markets. According to the sponsors, the plant has a production capacity of about one million metric tonnes of aluminium annually.

At the event, Deputy Gas Minister Ekperikpe Ekpo emphasised that the ceremony marked the solidification of the partnership between the two entities, calling it an epoch-making occasion. He highlighted that this milestone reflects President Bola Tinubu's strong commitment to fostering investments in utilising Nigeria's abundant natural gas resources to propel the country's industrialisation, economic growth, and development.

Ekpo stated that once the ALSCON plant resumes operations, it is expected to reclaim its role as a key driver for the development of Nigeria's aluminium upstream and downstream sectors. He reiterated that the plant will leverage natural gas, positioning Nigeria as a leading aluminium producer in both Africa and the global market. The project aims to significantly boost the nation's industrial output with a production capacity of one million metric tons of aluminium per year and the capability to generate approximately 540 MW from its gas-fired power plant.

BFI Group and CNCEC unlocking milestone

While congratulating BFI Group and CNCEC on reaching this significant milestone, Ekpo expressed confidence that, given the expertise and capabilities of both companies, the project would be completed on time and within budget. In his remarks, BFI Group Chairman Dr Reuben Jaja noted that the meeting between President Bola Tinubu and Chinese President Xi Jinping had already yielded positive results.

He added that the project would pave the way for establishing comprehensive strategic partnerships in areas such as petrochemicals, chemical engineering, natural gas processing, fertiliser production, power generation, and infrastructure development—all of which align with CNCEC's core expertise. CNCEC Chairman, Mr Bao Guandong, also spoke at the event, acknowledging Nigeria's vast oil and gas reserves and emphasising that BFI Group remains a reliable and capable partner.

"We have set up many plants in the world. This project is a win-win situation for both parties. Today's signing is a good start. We will do our best to select the best workers and ensure safe, quality and complete control of the project. CNCEC International will dispatch its best engineers to ensure the safety, quality and schedule of this project. CNCEC International team will closely cooperate with our counterpart to fully support the financing of this project," Guandong stated.

• [Editor:Alakay]